New Orleans Mayor-elect LaToya Cantrell, who takes office in May, introduced limits on short-term rentals of multi-family properties in some commercial districts in residential neighborhoods.
Zoning laws in NOLA are influenced by the city’s 300-year history and its unique status as a major U.S. city still in recovery and in need of flood protection.
A city as old and unique as New Orleans is bound to have complicated — and sometimes confusing and contradictory — zoning laws. For decades, there wasn’t a major overhaul of the city’s comprehensive set of regulations until three years ago. Zoning laws change with the city and aren’t set in stone. They’re frequently amended, debated, and set before the City Council for revisions.
Some topics and issues, such as overhauling infrastructure and flood protection, aren’t new. Others, like the short-term rentals (STR) regulation, are relatively recent. Then there are specific zoning regulations that govern historic districts. So, if you’re considering investing in property in New Orleans, it makes sense to familiarize yourself with the New Orleans-specific laws and to keep up with the changes. But first, here are some zoning basics.
What Is Zoning?
Zoning laws govern land use. Local legislative bodies use geographic divisions called zones to regulate land use and construction.
Zoning laws ensure proper land use that, ideally:
- Provides proper infrastructure
- Helps cities develop in ways beneficial to their residents
- Protects property values
- Minimizes inappropriate land use
- Protects natural resources from depletion, harm, and overdevelopment.
Zoning laws regulate zones, or districts, within a city, by specifying — and limiting — uses for each, including:
- District use: residential, commercial, etc.
- Types, size, configuration, height, etc., of structures within the district
- Location of structures and green spaces
- Infrastructure maintenance such as flood protection and traffic safety.
Why Understanding NOLA Zoning Laws Is Important
So, why is it important to understand zoning if you’re considering investing in New Orleans property? Being aware of zoning laws would help you determine whether the property you’re buying could be repurposed, as well as how any changes you might make would affect your neighbors. This also applies to others trying to make changes that may affect your property, and whether you’re within your rights to stop them if necessary.
How Are Zoning Laws Enforced?
Zoning laws are spelled out in ordinances. Draft ordinances can face a lengthy and controversial road to approval, including council and planning commission reviews and revisions, and multiple public hearings. Typically — and with public input — the agencies in charge of zoning are: the city’s zoning staff, the planning commission, the Board of Zoning Adjustment (BZA), and the City Council. Although the ordinance is legally binding, the final product is not set in stone — there’s usually room for change down the road.
Three Types of Zoning Ordinances
Zoning ordinances extend to three broad areas:
- Type of district: commercial, residential, industrial, and agricultural (and the subcategories within each of these four broad categories), plus other, more specialized types, such as planned use or mixed use, and historic districts
- Performance standards such as signage, fencing, parking, and noise
- Procedures for requests under the ordinance: number of days to approve or deny a permit, what notices must go up, etc.
The New Orleans Comprehensive Zoning Ordinance
The Comprehensive Zoning Ordinance (CZO) regulates land use throughout the City of New Orleans. As in most U.S. cities, the New Orleans CZO identifies zoning districts, land uses, individual zoning district regulations, citywide standards, operational rules, structure height limits, and so on. All major U.S. cities except Houston have CZOs.
There are 13 planning districts in New Orleans. The city’s property viewer tool allows you look up planning and zoning information for properties in all zoning districts.
After Hurricane Katrina, it became apparent that the CZO adopted in 1970 could use a major overhaul. It had been amended many times, but the last revision effort, in 2002, was not adopted. The new CZO went into effect in August 2015, with the help of New Orleans City Planning Commission, a nine-member citizen board appointed by the mayor and approved by the City Council, and other agencies. The new CZO spans 15 years (through 2030) and focuses on flood protection and the long-term future in terms of changing demographics and sustainability, among other factors.
What Affects Zoning in New Orleans
Base flood elevation (BFE) is defined by Federal Emergency Management Agency as the “computed elevation to which floodwater is anticipated to rise during the base flood.” It is essential information in flood-prone areas, where “the relationship between the BFE and a structure’s elevation determines the flood insurance premium.”
Some say conforming to BFE standards could impede development because of the cost of hiring a surveyor and obtaining the necessary elevation certificate. Another potential impediment is the limited property inventory and the density of development in Orleans Parish, but that’s a situation not unique to New Orleans.
The 2015 CZO underwent more than a few last-minute changes due to public objections. There were dozens of amendments on some hotly discussed issues, such as land use in the French Quarter, the involvement of the Vieux Carré Commission in issuing permits for any change in use of a building in the French Quarter, and riverfront development and related structure heights. The CZO is a fluid, dynamic entity structured to move forward along with the city.
Zoning and Historic Properties
In a city that is 300 years old, there are bound to be deeply rooted reasons for the way the infrastructure is maintained and zoning rules created and applied. A multitude of factors contribute to the city’s residential patterns and how they came to be. For one, there’s a long history of segregation, as detailed in a recently published report from The Data Center. Another significant factor is the area’s vulnerability to flooding.
Still, the city is committed to the preservation of historic properties and historic districts (urban and residential). There are 18 historic districts in New Orleans. The Historic District Landmarks Commission strictly enforces regulations pertaining to historic properties. Those include oversight of renovations, new construction, and changes to a property’s exterior that are visible to the public.
Another strong arm governing zoning integrity — in the French Quarter specifically — is the Vieux Carré Commission (VCC). This agency oversees protection, preservation, and maintenance of historic and architectural character of the oldest area of New Orleans. This means that you need a signed VCC permit to conduct “all repairs, alterations and construction that affect any building element exposed to outside air (whether visible from the street or not) of any building situated on private property in the French Quarter. This includes carriageways, alleyway, rear buildings, etc.”
Short-Term Rental Zoning Regulations
Just like many other U.S. cities, New Orleans has been engaged in a debate over the impact of short-term rentals. The city has made some strides toward regulating them — as well as mostly banning them in the French Quarter altogether — but critics say the proliferation of STRs, via Airbnb in particular, constitutes “not home sharing but the hotelization of residential housing.”
According to a recent report from housing advocacy group the Jane Place Neighborhood Sustainability Initiative (JPNSI), nearly 20 percent of short-term rental operators in New Orleans control nearly half of all listings. This results, the STR critics say, in higher rents, home prices, and property values — and hurts local residents.
Councilwoman and Mayor-elect LaToya Cantrell, who takes office in May, introduced the limit for short-term rentals of multi-family properties in New Orleans. In some commercial districts in residential neighborhoods, multi-family property owners will be allowed only two short-term rentals and will need City Council permission for additional units.
This was an attempt to regulate STRs in commercial zones in particular, where they’ve been allowed on an unlimited basis, and some residential property owners had been converting apartment buildings within commercial zones into mini-hotels. Cantrell also ordered a study on the effect of short-term rentals citywide.
If you are considering investing in commercial real estate in New Orleans and have questions about zoning laws or navigating the most recent changes, please contact a Satsuma Realtor who can help you weigh investment opportunities and guide you through a smooth real estate transaction.